Shares in gold miner Centamin plummeted more than 50% before being suspended after an Egyptian court ruled that the contract for the company's flagship Sukari gold mine in the country was void.

A judge said it was invalid and a further decision to offer a 30-year contract to allow it to be renewed was also void. The mine, not far from the Red Sea coast near Marsa Alam, is joint-owned with the Egyptian government.

The company attempted to allay fears, saying the mine remains operational.

It said

Comments reportedly made by an Egyptian administrative court this morning have given rise to speculation that parts of the Concession Agreement may have, in fact, been suspended. However at this time, no details of a final decision are available and no written judgement has been given.

Centamin confirms that it is not a party to this case, repeats its view that the concession as law 222 of 1994 remains valid and that the court does not have jurisdiction to cancel it.

The Company will inform the market further as soon as more information is available. In the meantime normal mining operations continue.

Centamin are the latest in a number of companies being hauled before the courts over contracts signed with the previous Mubarak regime.

A lawyer, Hamdy Fakharany, who filed the case against Centamin claiming the returns to the government were not high enough, told Reuters:

The ruling brings back Egypt's gold back [home].
We will take an official copy of the ruling and inform the government, the mine should be closed now. This is a very positive ruling in favour of the Egyptian people.